Ethan Conrad buys former Bank of America building in Carmichael
Ethan Conrad has found a new opportunity in a closed bank branch.
Ethan Conrad, a prolific real estate investor, has found a new way to make money after he acquired repossessed bank branches.
Last week, the Sacramento-based investor in commercial real estate announced that he had closed escrow on 6705 Fair Oaks Boulevard. In Carmichael is a former Bank of America branch.
Conrad wrote in an email that the building was a good example of a value-added property, as it could be increased in value by a little remodeling. Conrad said in an email that the separate land parcel is worth a lot because fast food and carwash tenants are interested.
Conrad told staff of Ethan Conrad Properties Inc. that he intended to renovate the building, which measures 10,350 square feet. He would then rent or sell it to a new user.
He said that the entire property has a separate parcel which will be sold separately to retailers who are interested in converting it into other uses. The property also has 127 parking spots in addition to the building.
Conrad stated that he paid approximately $1,22 million for the land. Ulysses Laman of Ethan Conrad Properties and Race Merritt will be handling the brokerage for this property.
Commercial real estate is experiencing a period of interesting growth, despite factors like tight lending standards and, for certain property types, such as offices, a lower demand. This was confirmed by Conrad, whose holdings grew rapidly by purchasing distressed properties during Great Recession.
He said, "There will be many distressed office buildings. However, retail and industrial are strong markets."
The building was built in 1963 and has housed Bank of America since at least 1970. The exact date of the closure is not known, but online photos taken a year earlier show that the building still displayed company signage.
According to the real estate website Reonomy, Bank of America Corp., based in Charlotte (North Carolina), appears to be the buyer in this deal. The California representative of Bank of America did not respond to a message left Tuesday seeking comment about the sale.